Work Service Group has acquired two companies from CRS Group specializing in outsourcing and quality control. This acquisition represents another step in the Group’s long-term growth strategy envisaging investment in high-margin businesses and expansion into international markets. Work Service Group is set to acquire full ownership of CRS Poland and CRS Belgium companies for a total of PLN 30.2 million. The transaction aims to consolidate the Group’s leading position in the market for HR services through expansion of the Group’s operations into a new Belgian market as well as enhancement of the Group’s existing competences in the Polish market.
The agreement on acquisition of CRS Group companies was signed on 16 September 2015. Work Service Group is set to acquire 100% interests in the Polish and Belgian companies for a total of EUR 7.175 million. The purchase price will be paid in two tranches, namely: EUR 6.4 million and EUR 0.775 million.
- The transaction of acquisition of CRS Group companies constitutes another stage of implementation of our strategy which foresees high-margin business growth. We are merging with a partner boasting 35 years of history and we are achieving two key objectives by incorporating the Polish and Belgian companies into our Group. Firstly, we are strengthening our competence in the outsourcing and quality control area overseen by Exact Systems, our subsidiary. Secondly, we are entering a new market in Belgium, which offers us even greater potential for further geographic expansion and consolidation of our position not only in the Central and Eastern Europe but also across Europe as a whole, stresses Tomasz Hanczarek, President of Management Board of Work Service S.A.
CRS Group was established in 1980 and currently operates in six European markets. In the year 2014, its Polish subsidiary posted a revenue of EUR 6.1 million, whereas its Belgian subsidiary reported a revenue of EUR 5.8 million. CRS companies specialize in providing outsourcing and quality control services and have earned their reputation and gained a solid market position especially in the automotive industry. In Poland, CRS operates an extensive network of 18 permanent branches, further enhancing the existing competences of Work Service Group and contributing to expansion of the Group’s operations.
- The opportunity to work with CRS, an experienced player in the outsourcing and quality control market, is bound to benefit both the coverage and quality of our business. Through the merger, we are gaining access to the new Belgian market and entering it hand in hand with the industry’ leader who holds a greater than 25% share in the domestic market, thus consolidating our position among the companies controlling quality across the European automotive industry. In return, CRS and its clients are offered an opportunity to use Exact Systems’ services in all countries where the company is present, says Paweł Gos, President of the Management Board of Exact Systems.
Takeover of CRS Group companies is not the only acquisition made by Work Service Group over the recent years. In 2013, the Group acquired Prohuman, a Hungarian temporary placement company, Polish branch of Antal International and Work Express, and established a joint venture with Fiege Group from Germany in 2014.
- This is not the end of our acquisition plans as we are planning to take over a company specializing in IT outsourcing on German market, this year. Further international expansion and investment in high-margin companies allows us to diversify sources of revenue and to maintain dynamic but sustainable growth of the Group’s overall operations. With each new acquisition, we are also gaining additional know-how about new markets and consolidating our existing competences.
In doing so, we are becoming even better positioned to meet the expectations of our Polish and international clients, adds Tomasz Misiak, President of the Supervisory Board of Work Service S.A.
Work Service Group was established in 1999 and is a top supplier of end-to-end HR services across Central Europe. It operates through its extensive branch network present in 11 CEE countries, including Poland, Russia, Germany, Czech Republic, Turkey, Romania, Hungary, Slovakia. The Group specializes in HR consulting services, as well as HR restructuring processes, permanent and temporary recruitment, and employee outsourcing. More than 3000 companies have trusted Work Service as their business partner, and with the help of the Company, 50,000 persons find a job in Poland and abroad every month. Work Service is the first HR services company quoted on the Warsaw Stock Exchange.
For further information:
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Szef Biura Prasowego Work Service
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